8-K

UNITED STATES

SECURITIES AND EXCHANGE

COMMISSION

Washington, D. C. 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 24, 2008

First Financial Holdings, Inc.

(Exact name of registrant as specified in charter)

Delaware	0-17122	57-0866076
State or other jurisdiction of incorporation	Commission File Number	I.R.S. Employer I.D. number

34 Broad Street, Charleston, South Carolina  29401

(Address of principal executive offices)

Registrant's telephone number (including area code):  (843) 529-5933

Not applicable

(Former name or former address, if changed since last report)

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4c under the Exchange Act (17 CFR 240.13e-4(c))

 

Section 2 -- Financial Information

Item 2.02 Results of Operations and Financial Condition

On October 24, 2008 First Financial Holdings, Inc. announced Fourth Quarter and Fiscal Year results and quarterly dividend payment. For more information regarding this matter, see the press release and additional financial information attached hereto as Exhibit 99.1.

Section 9 -- Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit (99.1). Press release dated October 24, 2008 with additional financial information.

SIGNATURES

 Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FIRST FINANCIAL HOLDINGS, INC
	/s/ R. Wayne Hall
	R. Wayne Hall
	Executive Vice President
	and Chief Financial Officer
Date: October 24, 2008

EXHIBIT INDEX

Exhibit Number	Description
99.1	First Financial Holdings, Inc. Fourth Quarter and Fiscal Year results and quarterly dividend payment with additional financial information

EX-99.1

Exhibit 99.1

First Financial Holdings, Inc. Fourth Quarter and Fiscal Year results

and additional financial information.

FIRST FINANCIAL HOLDINGS, INC.

34 Broad Street – Charleston, S.C. 29401

843-529-5933 – FAX: 843-529-5883

NEWS NEWS NEWS NEWS NEWS

Contact:	Dorothy B. Wright
	Vice President-Investor Relations
	and Corporate Secretary
	(843) 529-5931 or (843) 729-7005

FIRST FINANCIAL HOLDINGS, INC.

ANNOUNCES FOURTH QUARTER AND FISCAL 2008 EARNINGS

AND QUARTERLY DIVIDEND PAYMENT

Charleston, South Carolina (October 24, 2008) - First Financial Holdings, Inc. (“Company”) (NASDAQ GSM: FFCH) today reported net income for the fourth quarter of its fiscal year ended September 30, 2008. Net income for the quarter ended September 30, 2008 was $6.3 million and increased $1.1 million or 21.5% from the comparative quarter ended September 30, 2007. Basic and diluted earnings per share totaled $0.54 for the current quarter, compared to $0.44 per basic and diluted share for the quarter ended September 30, 2007. Net income and diluted earnings per share for the twelve months ended September 30, 2008 totaled $22.6 million, or $1.94, compared with $25.1 million, or $2.07, for the twelve months ended September 30, 2007.

President and Chief Executive Officer A. Thomas Hood commented, “We are very pleased with our solid fourth quarter fiscal year results and with operations during fiscal 2008. Our operating results are due in large part to the quality of our management team and staff, our credit culture and the confidence of our customers in our ability to provide the banking, financing, investment, trust and insurance products and services they need in this challenging environment. It is clear that our strategy of diversifying our revenues and providing our customers with a broad selection of financial solutions is also benefiting our customers, our bank and our shareholders.”

Compared with the quarter ended June 30, 2008, the net interest margin decreased by eight basis points from a net interest margin of 3.56% to 3.48% for the quarter ended September 30, 2008. Net interest income for the quarter ended September 30, 2008 was $24.2 million, increasing from $24.0 million or 0.6% for the linked quarter ended June 30, 2008. Hood commented, “We continue to face significant pricing competition however our focus remains on increasing our core deposits and developing long-term customer relationships.”

Hood noted, “Credit quality weakened during the fourth fiscal quarter. Consumers in our markets are experiencing higher unemployment, lower home values and increased living expenses. We are closely monitoring credit trends in our markets and specific loans in our loan portfolio. The Company continues to experience higher levels of non-performing loans and net loan charge-offs as compared to our historical lows; but when compared to industry averages, our problem loans and charge-offs are very low. We remain confident in our underwriting and the quality of loans originated. Annualized net loan charge-offs as a percentage of net loans totaled 0.39% for the quarter ended September 30, 2008.”

The Company recognized a provision for loan losses of $5.2 million for the quarter ended September 30, 2008 compared to $4.9 million for the quarter ended June 30, 2008, and $1.9 million for the quarter ended September 30, 2007. The increase in the provision on both a linked and comparative quarter basis is attributable to increased delinquencies and non-performing loans and an ongoing assessment of current economic conditions specific to the markets we serve. The Company increased its allowance for loan losses as a percent of total loans from 92 basis points during the quarter ended June 30, 2008 to 102 basis points during the quarter ended September 30, 2008. Problem assets, which include non-accrual loans, accruing loans more than 90 days past due and real estate owned, as a percentage of total assets were 0.84% at September 30, 2008 compared with 0.28% at September 30, 2007 and 0.76% at June 30, 2008. The Company’s loan loss reserve coverage of non-performing loans was 116.3% at September 30, 2008 compared to 251.4% at September 30, 2007 and 126.3% at June 30, 2008. The Company continues to work with borrowers searching for alternatives to mortgage foreclosure.

-more-

First Financial Holdings, Inc.

Page 2

October 24, 2008

Mortgage banking income decreased by $104 thousand or 11.3% for the comparative quarter ended September 30, 2007. This change was the result of the narrowing spreads between the 10-year Treasury yield and 30-year mortgage rates. During fiscal 2008, our hedging program offset $2.4 million mark to market losses on mortgage servicing rights.

During the quarter ended September 30, 2008, we had one investment considered other than temporarily impaired (OTTI) and we recorded a $486 thousand loss for that adjustment. The company had no exposure to preferred stock issued by the Federal Home Loan Mortgage Corporation (FHLMC) or the Federal National Mortgage Association (FNMA).

Total non-interest revenues were $15.1 million for the fourth quarter of fiscal 2008, an increase of $1.7 million from $13.4 million for the quarter ended September 30, 2007. This increase is primarily attributable to increases in insurance commissions as a result of the acquisition of The Somers-Pardue Agency, Inc., service charges and fees on deposit accounts and gains on disposition of assets from the sale of a building once used as an operations center in Conway, South Carolina. Total revenues, defined as net interest income plus total other income, excluding gains on sales of investments and gains on disposition of assets, increased to $38.3 million for the quarter ended September 30, 2008, an increase of $4.3 million, or 12.8%, from $34.0 million during the comparable quarter ended September 30, 2007.

Total non-interest expenses increased by $1.1 million or 4.7%, to $23.9 million for the quarter ended September 30, 2008 compared to $22.8 million for the quarter ended September 30, 2007. Salary and employee benefits costs increased in the fourth quarter of fiscal 2008 as a result of the acquisition of the operations of Somers-Pardue. Additionally, we continue to have higher occupancy expenses as a result of our recently completed renovations on the building adjacent to our operations center. We expect that leases on this property will reduce occupancy costs in future quarters. Several new leases to third-party businesses have been executed and increased occupancy levels are expected during the first quarter of fiscal 2009.

Hood noted, “During the fourth quarter of fiscal 2008, we relocated two financial service centers: Shoppers Port on Highway 17 South in Charleston and our Southpark location in Florence. We expect to open our second in-store financial service center in the new Wal-mart Superstore in Florence on October 29, 2008 and we are relocating our Mall Drive financial center in North Charleston in March 2009. These relocations allow for more exposure as traffic patterns change.”

Hood commented, “The housing market outlook remains challenging and we are continuing to see slowness in the housing market as a result of increased inventories of residential units and fewer housing starts. We expect the housing market to continue to be very weak for the foreseeable future. ”

Hood continued, “While current market conditions continue to present many challenges for all financial institutions, we are committed to finding the best financial solutions for our customers and the best results for our shareholders. Our Board of Directors, officers and employees welcome the new fiscal year and are focused on achieving our financial and operational goals for fiscal 2009.”

The Company also announced today that its Board of Directors has declared a regular quarterly cash dividend of .255 cents per share. The dividend is payable November 21, 2008, to stockholders of record as of November 7, 2008. Hood concluded, “The Company continues to achieve solid earnings and the Board believes strongly that shareholders should share in the Company’s success.”

-more-

First Financial Holdings, Inc.

Page 3

October 24, 2008

As of September 30, 2008, First Financial’s total assets were $3.0 billion, loans receivable totaled $2.4 billion and deposits were $1.9 billion. Stockholders’ equity was $183.5 million and book value per common share totaled $15.69 at September 30, 2008. First Federal’s capital ratio (i.e., equity divided by assets) was 6.9% at September 30, 2008, compared to 7.0% and 7.4% at June 30, 2008 and September 30, 2007, respectively. Tangible equity to assets was 7.5% at September 30, 2008, compared to 7.2% and 7.4% at June 30, 2008 and September 30, 2007, respectively. As of September 30, 2008, First Federal remained categorized “well capitalized” under regulatory standards.

First Financial is the holding company for First Federal Savings and Loan Association of Charleston (“First Federal”), which operates 58 offices located in the Charleston metropolitan area, Horry, Georgetown, Florence and Beaufort counties in South Carolina and Brunswick County in coastal North Carolina offering banking and trust services. The Company also provides insurance and brokerage services through First Southeast Insurance Services, The Kimbrell Insurance Group and First Southeast Investor Services.

NOTE: A. Thomas Hood, President and CEO of the Company, and R. Wayne Hall, Executive Vice President and CFO, will discuss these results in a conference call at 2:00 PM (EDT), October 24, 2008. The call can be accessed via a webcast available on First Financial’s website at www.firstfinancialholdings.com.

Forward Looking Statements

Certain matters in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, including operating efficiencies, perceived opportunities in the market, potential future credit experience, and statements regarding the Company’s mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. Management’s ability to predict results or the effect of future plans or strategies is inherently uncertain. The Company’s actual results, performance or achievements may differ materially from those suggested, expressed or implied by forward-looking statements due to a wide range of factors including, but not limited to, the general business environment, general economic conditions nationally and in the State of South Carolina, interest rates, the South Carolina real estate market, the demand for mortgage loans, the credit risk of lending activities, including changes in the level of and trend of loan delinquencies and charge-offs, results of examinations by our banking regulators, competitive conditions between banks and non-bank financial services providers, regulatory changes and other risks detailed in the Company’s reports filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended September 30, 2007. Accordingly, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on these statements.

Such forward-looking statements may include projections. Such projections were not prepared in accordance with published guidelines of the American Institute of Certified Public Accountants or the SEC regarding projections and forecasts nor have such projections been audited, examined or otherwise reviewed by independent auditors of the Company. In addition, such projections are based upon many estimates and inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of the Company. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by the Company that the projections will prove to be correct. The Company does not undertake to update any forward-looking statement that may be made on behalf of the Company.

For additional information about First Financial, please visit our web site at www.firstfinancialholdings.com or contact Dorothy B. Wright, Vice President-Investor Relations and Corporate Secretary, (843) 529-5931.

-more-

First Financial Holdings, Inc.

Page 4

October 24, 2008

FIRST FINANCIAL HOLDINGS, INC.
Unaudited Consolidated Financial Highlights
(in thousands, except share data)
	Three Months Ended									Twelve Months Ended
	09/30/08			09/30/07			06/30/08			09/30/08			09/30/07
Statements of Income
Interest income	$	43,371		$	42,931		$	43,229		$	174,772		$	168,044
Interest expense		19,216			22,239			19,220			83,408			85,214
Net interest income		24,155			20,692			24,009			91,364			82,830
Provision for loan losses		(5,218	)		(1,850	)		(4,907	)		(16,939	)		(5,164	)
Net interest income after provision		18,937			18,842			19,102			74,425			77,666
Other income
Net gain on sale of investments and
mortgage-backed securities		-			-			4			750			266
Brokerage fees		672			664			665			2,923			2,551
Commissions on insurance		6,068			4,883			7,136			23,773			20,865
Other agency income		274			288			296			1,057			1,181
Service charges and fees on deposit accounts		6,132			5,818			5,912			23,901			21,566
Mortgage banking income		818			922			1,828			7,456			4,255
Gains on disposition of assets		913			40			43			1,052			230
Other		176			759			504			1,970			2,303
Total other income		15,053			13,374			16,388			62,882			53,217
Other expenses
Salaries and employee benefits		14,686			14,172			16,625			65,282			58,669
Occupancy costs		2,181			1,810			2,016			8,243			6,632
Marketing		459			522			685			2,408			2,261
Furniture and equipment expense		1,631			1,516			1,445			5,876			5,406
Other		4,936			4,801			4,944			18,501			17,468
Total other expenses		23,893			22,821			25,715			100,310			90,436
Income before income taxes		10,097			9,395			9,775			36,997			40,447
Provision for income taxes		3,788			4,204			3,873			14,359			15,375
Net income		6,309			5,191			5,902			22,638			25,072
Earnings per common share:
Basic		0.54			0.44			0.51			1.94			2.10
Diluted		0.54			0.44			0.51			1.94			2.07
Average shares outstanding		11,683			11,741			11,668			11,664			11,929
Average diluted shares outstanding		11,688			11,842			11,679			11,692			12,089
Ratios:
Return on average equity		13.59	%		11.09	%		12.60	%		12.16	%		13.99	%
Return on average assets		0.86	%		0.77	%		0.81	%		0.79	%		0.94	%
Net interest margin		3.48	%		3.31	%		3.56	%		3.41	%		3.36	%
Total other expense/average assets		3.24	%		3.39	%		3.54	%		3.50	%		3.38	%
Efficiency ratio (1)		61.36	%		67.81	%		63.47	%		64.33	%		67.16	%
Net charge-offs/loans, annualized		0.39	%		0.30	%		0.32	%		0.37	%		0.21	%

(1) Excludes from income - (losses) gains on sales of securities, net real estate operations, gains on disposition of assets; excludes from expenses - non-recurring compensation expenses.

Note: Certain prior period amounts have been reclassified to conform to current period presentation.

-more-

First Financial Holdings, Inc.

Page 5

October 24, 2008

FIRST FINANCIAL HOLDINGS, INC.
Unaudited Consolidated Financial Highlights
(in thousands, except share data)
	09/30/08			09/30/07			06/30/08
Statements of Financial Condition
Assets
Cash and cash equivalents	$	62,949		$	77,334		$	72,735
Investments		60,969			55,629			61,760
Mortgage-backed securities		351,110			297,011			353,257
Loans receivable, net		2,333,268			2,140,769			2,268,484
Office properties, net		78,738			74,303			77,673
Real estate owned		4,286			1,513			5,442
Intangible assets		36,241			22,627			40,401
Mortgage servicing rights		12,550			12,831			12,754
Other assets		33,883			29,353			31,522
Total Assets		2,973,994			2,711,370			2,924,028
Liabilities
Deposits		1,851,102			1,854,051			1,865,261
Advances from FHLB		818,000			554,000			747,000
Other borrowings		75,205			52,207			69,204
Other liabilities		46,209			65,397			54,585
Total Liabilities		2,790,516			2,525,655			2,736,050
Stockholders’ equity
Stockholders’ equity		302,831			290,091			298,835
Treasury stock		(103,387	)		(103,197	)		(103,274	)
Accumulated other comprehensive loss		(15,966	)		(1,179	)		(7,583	)
Total stockholders’ equity		183,478			185,715			187,978
Total liabilities and stockholders’ equity		2,973,994			2,711,370			2,924,028
Stockholders’ equity/assets		6.17	%		6.85	%		6.43	%
Common shares outstanding		11,692			11,635			11,674
Book value per share	$	15.69		$	15.96		$	16.10
		09/30/08			09/30/07			06/30/08
Credit quality-quarterly results
Total reserves for loan losses	$	23,990		$	15,428		$	21,023
Loan loss reserves / loans		1.02	%		0.72	%		0.92	%
Reserves/non-performing loans		116.27	%		251.43	%		126.34	%
Provision for losses	$	5,218		$	1,850		$	4,907
Net loan charge-offs	$	2,251		$	1,610		$	1,785
Problem assets
Non-accrual loans	$	20,557		$	6,087		$	16,562
Accruing loans 90 days or more past due		76			49			79
REO through foreclosure		4,286			1,513			5,442
Total	$	24,919		$	7,649		$	22,083
As a percent of total assets		0.84	%		0.28	%		0.76	%

-30-

First Financial Holdings, Inc.
As of the Quarter Ended (Unaudited)
(dollars in thousands)
BALANCE SHEET	09/30/08			06/30/08			03/31/08			12/31/07			09/30/07			06/30/07			03/31/07			12/31/06
Assets
Cash and investments	$	123,918		$	134,495		$	142,364		$	137,847		$	132,963		$	151,474		$	169,538		$	161,515
Loans receivable		2,333,268			2,268,484			2,232,058			2,194,972			2,140,769			2,122,228			2,107,651			2,077,411
Mortgage-backed securities		351,110			353,257			370,848			345,397			297,011			264,655			285,321			290,148
Office properties and equip.		78,738			77,673			76,708			74,791			74,303			66,140			63,349			60,429
Real estate owned		4,286			5,442			4,310			2,748			1,513			1,560			1,277			2,005
Other assets		82,674			84,677			62,216			61,952			64,811			64,877			64,218			63,520
Total assets	$	2,973,994		$	2,924,028		$	2,888,504		$	2,817,707		$	2,711,370		$	2,670,934		$	2,691,354		$	2,655,028
Liabilities
Deposits	$	1,851,102		$	1,865,261		$	1,875,099		$	1,806,585		$	1,854,051		$	1,885,677		$	1,877,084		$	1,819,804
Advances-FHLB		818,000			747,000			719,000			708,000			554,000			435,000			454,000			475,000
Other borrowed money		75,205			69,204			52,204			52,206			52,207			97,258			104,730			112,996
Other liabilities		46,209			54,585			55,575			63,620			65,397			64,240			66,194			59,248
Total liabilities		2,790,516			2,736,050			2,701,878			2,630,411			2,525,655			2,482,175			2,502,008			2,467,048
Total stockholders' equity		183,478			187,978			186,626			187,296			185,715			188,759			189,346			187,980
Total liabilities and stockholders' equity	$	2,973,994		$	2,924,028		$	2,888,504		$	2,817,707		$	2,711,370		$	2,670,934		$	2,691,354		$	2,655,028
Total shares o/s		11,692			11,674			11,663			11,657			11,635			11,841			11,950			12,065
Book value per share	$	15.69		$	16.10		$	16.00		$	16.07		$	15.96		$	15.94		$	15.84		$	15.58
Equity/assets		6.17	%		6.43	%		6.46	%		6.65	%		6.85	%		7.07	%		7.04	%		7.08	%
AVERAGE BALANCES
Total assets	$	2,949,011		$	2,906,266		$	2,853,106		$	2,764,539		$	2,691,152		$	2,681,144		$	2,673,191		$	2,656,578
Earning assets		2,763,247			2,714,252			2,655,387			2,584,426			2,476,732			2,477,751			2,453,456			2,437,654
Loans		2,314,352			2,269,463			2,227,139			2,189,044			2,142,475			2,131,985			2,103,270			2,080,090
Costing liabilities		2,730,439			2,671,260			2,612,019			2,523,927			2,432,008			2,444,677			2,419,069			2,384,137
Deposits		1,875,748			1,884,688			1,841,855			1,841,414			1,874,849			1,878,237			1,836,062			1,826,960
Equity		185,728			187,302			186,961			186,506			187,237			189,053			188,663			185,861

First Financial Holdings, Inc.
(dollars in thousands)
				Quarter Ended (Unaudited)																					Fiscal Year
	09/30/08			06/30/08			03/31/08			12/31/07			09/30/07			06/30/07			03/31/07			12/31/06			09/30/08			09/30/07
STATEMENT OF OPERATIONS
Total interest income	$	43,371		$	43,229		$	43,810		$	44,363		$	42,931		$	42,540		$	41,388		$	41,185		$	174,772		$	168,044
Total interest expense		19,216			19,220			21,669			23,303			22,239			21,559			20,933			20,483			83,408			85,214
Net interest income		24,155			24,009			22,141			21,060			20,692			20,981			20,455			20,702			91,364			82,830
Provision for loan losses		(5,218	)		(4,907	)		(3,567	)		(3,248	)		(1,850	)		(1,390	)		(1,071	)		(853	)		(16,939	)		(5,164	)
Net int. inc. after provision		18,937			19,102			18,574			17,812			18,842			19,591			19,384			19,849			74,425			77,666
Other income
Gain on investment securities					4			645			100									266						750			266
Brokerage fees		672			665			906			680			665			570			709			607			2,923			2,551
Commissions on insurance		6,068			7,136			6,532			4,037			4,883			5,082			6,970			3,930			23,773			20,865
Other agency income		274			296			237			250			288			321			325			247			1,057			1,181
Mortgage banking income		818			1,828			2,961			1,849			922			1,278			768			1,287			7,456			4,255
Svc. chgs/fees-dep. accts		6,132			5,912			5,780			6,077			5,818			5,720			4,938			5,090			23,901			21,566
Gains (losses) on disposition of properties		913			43			59			36			40			115			19			56			1,052			230
Other		176			504			681			611			758			409			689			447			1,970			2,303
Total other income		15,053			16,388			17,801			13,640			13,374			13,495			14,684			11,664			62,882			53,217
Other expenses
Salaries & employee benefits		14,686			16,625			15,963			18,007			14,172			14,596			14,840			15,173			65,282			58,669
Occupancy costs		2,181			2,016			2,012			2,034			1,810			1,601			1,566			1,655			8,243			6,632
Marketing		459			685			570			694			521			751			562			427			2,408			2,261
Furniture and equipment expense		1,631			1,445			1,374			1,532			1,641			1,473			1,380			1,373			5,876			5,406
Other		4,936			4,944			4,143			4,373			4,677			4,357			3,978			3,883			18,501			17,468
Total other expenses		23,893			25,715			24,062			26,640			22,821			22,778			22,326			22,511			100,310			90,436
Income before taxes		10,097			9,775			12,313			4,812			9,395			10,308			11,742			9,002			36,997			40,447
Provision for income taxes		3,788			3,873			4,783			1,915			4,204			3,810			4,202			3,159			14,359			15,375
Net Income	$	6,309		$	5,902		$	7,530		$	2,897		$	5,191		$	6,498		$	7,540		$	5,843		$	22,638		$	25,072
Note: Certain prior period amounts have been reclassified to conform to current period presentation.
Average shares o/s, basic		11,683			11,668			11,659			11,646			11,741			11,886			12,043			12,046			11,664			11,929
Average shares o/s, diluted		11,688			11,679			11,675			11,727			11,842			12,032			12,223			12,259			11,692			12,089
Net income per share - basic	$	0.54		$	0.51		$	0.65		$	0.25		$	0.44		$	0.55		$	0.63		$	0.49		$	1.94		$	2.10
Net income per share - diluted	$	0.54		$	0.51		$	0.64		$	0.25		$	0.44		$	0.54		$	0.62		$	0.48		$	1.94		$	2.07
Dividends paid per share, authorized	$	0.255		$	0.255		$	0.255		$	0.255		$	0.25		$	0.25		$	0.25		$	0.25		$	1.02		$	1.00

First Financial Holdings, Inc.
(dollars in thousands)
				Quarter Ended (unaudited)																					Fiscal Year
	09/30/08			06/30/08			03/31/08			12/31/07			09/30/07			06/30/07			03/31/07			12/31/06			09/30/08			09/30/07
OTHER RATIOS
Return on Average Assets		0.86	%		0.81	%		1.06	%		0.42	%		0.77	%		0.97	%		1.13	%		0.88	%		0.79	%		0.94	%
Return on Average Equity		13.59	%		12.60	%		16.11	%		6.21	%		11.09	%		13.75	%		15.99	%		12.52	%		12.16	%		13.99	%
Average yield on earning assets		6.24	%		6.40	%		6.63	%		6.81	%		6.89	%		6.88	%		6.84	%		6.70	%		6.53	%		6.82	%
Average cost of paying liabilities		2.80	%		2.89	%		3.34	%		3.67	%		3.65	%		3.54	%		3.51	%		3.41	%		3.17	%		3.53	%
Gross spread		3.44	%		3.51	%		3.29	%		3.14	%		3.24	%		3.34	%		3.33	%		3.29	%		3.36	%		3.29	%
Net interest margin		3.48	%		3.56	%		3.35	%		3.23	%		3.31	%		3.40	%		3.38	%		3.37	%		3.41	%		3.36	%
Operating exp./avg. assets		3.24	%		3.54	%		3.37	%		3.86	%		3.48	%		3.50	%		3.41	%		3.47	%		3.50	%		3.38	%
Efficiency ratio		61.36	%		63.47	%		61.39	%		71.10	%		66.77	%		65.90	%		63.87	%		69.27	%		64.33	%		67.16	%
Note: Average yields, costs and margins for prior periods adjusted to actual days
COMPOSITION OF GROSS LOAN PORTFOLIO
Mortgage Loans (1-4 Family)	$	896,747		$	880,759		$	887,670		$	882,179		$	876,320		$	882,225		$	890,541		$	888,797
Construction Loans (1-4 Family)		91,646			95,476			98,884			100,712			110,375			108,132			111,174			110,613
Commercial Real Estate		371,675			353,919			340,872			329,140			294,232			284,649			286,103			282,396
Commercial Business Loans		88,694			89,004			84,798			82,836			81,846			83,629			86,890			82,974
Land		260,263			259,146			251,937			246,532			231,415			227,471			222,165			219,349
Home Equity Lines of Credit		321,952			296,902			281,178			270,880			263,922			263,588			257,281			255,609
Mobile Home Loans		222,375			216,467			210,287			206,270			199,349			193,449			184,704			179,440
Credit Cards		16,125			15,824			15,638			16,198			14,775			14,272			13,940			14,579
Other Consumer Loans		139,244			139,085			136,546			138,282			138,719			134,944			120,377			118,211
		2,408,721			2,346,582			2,307,810			2,273,029			2,210,953			2,192,359			2,173,175			2,151,968
Less:
Unfunded Loan Commitments		53,398			58,894			59,502			63,027			56,485			56,497			52,073			61,052
Deferred Loan Fees		(1,935	)		(1,819	)		(1,651	)		(1,662	)		(1,729	)		(1,554	)		(1,305	)		(1,209	)
Total	$	2,357,258		$	2,289,507		$	2,249,959		$	2,211,664		$	2,156,197		$	2,137,416		$	2,122,407		$	2,092,125
Note: The Composition of Gross Loans has been changed to collateral type consistent with 10Qs as filed with the SEC.
ASSET QUALITY
Non-accrual loans	$	20,557		$	16,562		$	12,800		$	10,133		$	6,087		$	5,710		$	5,049		$	3,796
Loans 90 days or more past due		76			79			99			68			49			90			56			44
REO thru foreclosure		4,286			5,442			4,310			2,748			1,513			1,560			1,277			2,005
	$	24,919		$	22,083		$	17,209		$	12,949		$	7,649		$	7,360		$	6,382		$	5,845
LOAN AND REO LOSS RESERVES
Total reserves for loan losses	$	23,990		$	21,023		$	17,901		$	16,692		$	15,428		$	15,188		$	14,756		$	14,714
Loan loss reserves/ loans		1.02	%		0.92	%		0.80	%		0.76	%		0.72	%		0.71	%		0.70	%		0.70	%
Provision for losses		5,218			4,907			3,567			3,248			1,850			1,390			1,071			853
Net loan charge-offs		2,251			1,785			2,358			1,983			1,610			958			1,030			820
Net charge-offs/average net loans		0.10	%		0.08	%		0.11	%		0.09	%		0.08	%		0.05	%		0.05	%		0.04	%
Annualized net charge-offs/av.loans		0.39	%		0.32	%		0.43	%		0.36	%		0.30	%		0.18	%		0.19	%		0.16	%